Amaratunga and Baldry in the article "moving from performance measurement to performance management" discuss strategies which facility management organizations should implement in order to meet their organizational goals (Amaratunga & Baldry, 2002). They explain that organizations need to move from measuring performance to managing performance if they are to meet their goals. This can be achieved through anticipating organizational change and developing a plan for change. According to the authors, when such a plan is implemented effectively, then the organization will attain its objectives (Amaratunga & Baldry, 2002). Previously, organizations implemented performance measurement through periodically evaluating their strategies to ensure that quality of service is improved and production costs are reduced in order to meet their goals. However, modern organizations have realized the need for performance management which involves using performance measurement tools and information to effect positive changes to systems, culture and processes in organizations.
Amaratunga and Baldry view facility management as important for organizations since it affects organizational performance through aspects which include culture, strategy, supply chain management, service delivery, control of resources and others (Amaratunga & Baldry, 2002). When performance management is introduced to facility management, the performance measurement will be used to improve organizational performance. Performance management goals should include measuring organizational goal outcomes, assessment, management and improvement of facility management systems, measuring service attributes such as cost, quality, speed, employee alignment, customers services and others. For performance management to be successful, various attributes should be present in the organizational culture and these include accountability, leadership, communication, compensation, performance measurement and others. This will ensure all organizational stakeholders participate in implementing performance management systems. The authors conclude by explaining that implementing performance management systems has positive organizational and financial effects to an organization (Amaratunga & Baldry, 2002). These systems enable organizations achieve their goals.
Critical analysis
The authors have explored a very important aspect of facility management. Many firms have performance management tools but few have performance management systems. Performance measurement has gained importance with the development of frameworks such as total quality management as well as business models which measure performance such as SWOT and PESTEL analysis. However, few if any scholars have discussed performance management as discussed by the authors. As the authors have explained, performance management can help achieve organizational objectives through forecasting organizational change and developing a change plan. I agree with the authors on the importance of performance management and implementing change. Organizational change is an aspect which every organization implements within its lifetime. This is because the modern business environment is dynamic and businesses need to implement change in order to meet the changing market needs and develop strategies to counter competition (American Productivity and Quality Center, 2010). This can only be achieved through performance management systems especially in facility management.
The authors have also discussed that performance management plans should be implemented with support from all stakeholders. During implementation, certain attributes should be present in the organizational culture and these include accountability, leadership, communication, compensation, performance measurement and others. These aspects are common organizational culture attributes used by business managers to improve performance of their organization. They help in motivating employees and mobilizing them to develop an innovative strategy which ensures that high quality products are developed for consumption by the market (Hage, 1999). However, the authors should have discussed other important strategies of increasing value of products sold such as motivating the human resource. The human resource is the most important resource and its value surpasses that of capital resource or systems in facilities. The importance of the human resource should have been integrated by the authors when discussing performance management. For instance, various methods of motivating employees should have been discussed in detail.
How to apply what has been read
The subject discussed by the authors is important not only for business students but also to business managers and the public at large. Business students may apply the knowledge on facility management and performance management in their future careers as business managers. As future business managers in the dynamic business environment, they require knowledge on modern trends in business such as performance management. This will help them be competent and effective future business managers. Business students can also use the existing literature as a basis for developing superior theories and systems on performance management. They can do this through improving the weaknesses in the current literature on performance management and innovating new theories which do not have these weaknesses.
Business managers can use the theories discussed to improve the quality of products developed in their businesses. They can also use this knowledge to reduce costs and ensure that their products are innovating and attractive to the market. Performance management deals with forecasting organizational change and developing change plans which is important in the dynamic modern business environment. Applying performance management will ensure managers attract new customers and build customer loyalty through offering high quality products to the market. This will help them achieve their organizational objectives. Finally, the public may take advantage of this literature to improve their decision making processes when purchasing products. Market information is important to all consumers and knowledge on performance managements will make consumers raise their expectations as far as quality of products is concerned. This will raise their bargaining power and facilitate access to high quality products from retailers.
